NAI Hiffman has brokered a long-term lease for Silver Cross Hospital at Pavilion A, a six-level medical office building located at 1890 Silver Cross Blvd. in New Lenox, Illinois. The building, which totals 174,855 square feet, is a medical office facility serving Silver Cross Hospital and other healthcare users.
Immediately after the lease was executed, Pavilion A was sold for $88,600,000. The buyers are Chicago-based Farpoint and Dallas-based The Landes Group, which acquired the property from a seller partnership of PGIM Real Estate and NexCore Group. The transaction links a major lease renegotiation with an investment sale of a nearly fully occupied healthcare asset.
CBRE handled the investment sales assignment on behalf of the seller. Chris Bodnar of CBRE represented PGIM Real Estate and NexCore Group in the disposition of the property. On the leasing side, Silver Cross Hospital was represented by Perry Higa, executive vice president and partner at NAI Hiffman, in negotiating and executing the new long-term lease structure.
The deal involved renegotiation of Silver Cross Hospital’s existing lease at Pavilion A. Following the new agreement, Silver Cross became the largest tenant in the building, which is reported to be 96% occupied. As part of the updated lease terms, Silver Cross will maintain its existing space on the first and lower levels and will also continue to occupy space on the upper floors of the property.
Pavilion A was constructed in 2012 as a modern medical office building aligned with Silver Cross Hospital’s campus. With the completion of the lease transaction and subsequent sale, the property remains a core healthcare facility with a hospital-affiliated tenancy and high occupancy.
NAI Hiffman has been retained as the leasing agent for Pavilion A on an ongoing basis, continuing its role in marketing and leasing the medical office building. In addition, Hiffman National will serve as the property manager, overseeing day-to-day operations at the asset under the new ownership. The combination of a long-term commitment from Silver Cross Hospital, a recent building sale, and continuity in leasing and property management positions the building for operational stability under its new ownership group.
